DSM to buy drugmaker Patheon, create new company

Nov 19, 2013, 5:03 AM EST

AMSTERDAM (AP) — Dutch chemicals maker Royal DSM NV has struck a deal to buy Canada's Patheon Inc. for $195 million (145 million euros), combine it with its own drug manufacturing operations, and spin them off into a new larger company.

Under the deal announced Tuesday, DSM will contribute its own drug manufacturing operations — which are larger than those of Patheon — to the new company.

The private equity firm JLL will buy a 51 percent stake in the new company for $489 million. That money will be used to kick $200 million back to DSM and also to buy Patheon.

Patheon's managers, who own a majority of their company, have agreed to the firms' $9.32 per share takeover offer. That's a 68 percent premium to Patheon's closing price Monday.